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Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000?
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Mr kumar started business with cash 10000 bank balance 15000 debtors 2...
Introduction
Mr Kumar started a business with a total investment of INR 10000 in cash, INR 15000 in bank balance, and INR 2000 as debtors. He also had INR 8000 as creditors, INR 30000 worth of stock, INR 5000 worth of furniture, and an INR 18000 loan.
Cash and Bank Balance
- Mr Kumar invested INR 10000 in cash to start the business
- He had INR 15000 in bank balance
The cash and bank balance are the initial capital invested by Mr Kumar to start his business. These funds will be used to purchase assets and meet the expenses of the business.
Debtors and Creditors
- Mr Kumar had INR 2000 as debtors
- He had INR 8000 as creditors
Debtors are customers who owe money to the business for goods or services provided on credit. Creditors are suppliers or vendors who have extended credit to the business for the purchase of goods or services. In this case, Mr Kumar had an amount of INR 2000 to be collected from his customers, and he owed INR 8000 to his suppliers.
Stock and Furniture
- Mr Kumar had INR 30000 worth of stock
- He had INR 5000 worth of furniture
Stock or inventory is the goods that a business has purchased or produced for sale. Furniture is a fixed asset used in the business for the long term. The value of these assets is important to calculate the net worth of the business.
Loan
- Mr Kumar had an INR 18000 loan
The loan is a liability for the business, which will be repaid over time. It is important to keep track of loans and their repayments to ensure that the business is not overburdened with debt.
Conclusion
Mr Kumar started his business with a total investment of INR 75000 (INR 10000 + INR 15000 + INR 2000 + INR 30000 + INR 5000). As the business grows, he will need to keep track of the assets and liabilities to ensure that the business is profitable and sustainable in the long run.
Community Answer
Mr kumar started business with cash 10000 bank balance 15000 debtors 2...
Cash A/c Dr. 10000
Bank A/c Dr. 15000
Debtors A/c Dr. 2000
Stock A/c Dr. 30000
Furniture A/c Dr. 5000
To loan A/c 18000
To Creditors A/c 8000
To Capital Reserve A/c 36000
Bank A/c Dr. 15000
Debtors A/c Dr. 2000
Stock A/c Dr. 30000
Furniture A/c Dr. 5000
To loan A/c 18000
To Creditors A/c 8000
To Capital Reserve A/c 36000
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Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000?
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Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000?.
Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr kumar started business with cash 10000 bank balance 15000 debtors 2000 creditors 8000 stock 30000 furniture 5000 loan 18000?.
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